Putin surprises US with missile suggestion

Vladimir Putin sprang a diplomatic surprise yesterday in his dispute with America over the siting of a US missile defence system in Europe, suggesting instead that it could be placed in the former Soviet republic of Azerbaijan.

The Russian leader, who raised the prospect of a new cold war with the west in his hawkish speech on the eve of the summit, claimed he had already secured the agreement of the Azerbaijani government to the proposal.

The offer was not immediately rejected by a startled George Bush following bilateral talks between the two leaders at the G8 summit.

The US proposal for a missile defence system, including interceptor and radar, sited in the former Warsaw pact countries of Poland and the Czech Republic, has prompted fury in Moscow. Mr Putin has threatened to train his nuclear arsenal on Europe as a reprisal, as well as withdraw from arms control treaties.

But yesterday Mr Putin said he would drop his objections to Mr Bush's plan if the interceptors and radar were in the former Soviet republic. He argued that a system based in Azerbaijan would be more effective in combating missiles aimed at Europe and the US by so-called rogue states such as Iran.

He said the siting in Azerbaijan would protect the whole of Europe, and also ensure that any missiles shot down did not fall on mainland Europe but into the sea. Azerbaijan shares a 268 mile border with Iran. Information from the Russian radar would be relayed in real time to the US, and presumably Europe.

The Russians fear a system based in Poland is in reality designed to act as a shield against Russian intercontinental missiles and represents a nuclear escalation. America claims this belief is a misunderstanding, since the radar system technology based in Poland would not be able to hold back missiles sent from a Russian silo.

Mr Putin added that, as part of the proposed deal, the US would be required to share technology, something the US has broadly offered to do.

Mr Bush called it "an interesting suggestion" and said the US and Russia would begin negotiations to pursue the idea. There is public resistance to the proposals from some in Poland and the Czech Republic, so the idea of switching the system elsewhere has its attractions.

"He is concerned that a missile defence system is not an act that a friend would do," Mr Bush said.

"We both agreed to have a strategic dialogue, an opportunity to share ideas and concerns" between diplomatic and military officials.

He added that people did not like it when Russia and the US fell out. "It creates tensions," he said, with a smile.